Waggaman update: deep into commissioning phase

Dyno Nobel’s Australian parent, Incitec Pivot, published a Market Update at the end of August 2016, with news of good progress at its $850 million brownfield ammonia plant.

They report being “deep into [the] commissioning phase” now, with “performance testing expected in September.”

The new ammonia plant has set a production-high of 2,320 short tons in a day, which is just over 90% of its nameplate capacity. It has already produced “more than 25,000 short tons of ammonia,” with the “product provided to off takers.”

Progress on WALA appears to be a stand-out, compared to the worrisome news coming out of other construction sites, say, in Tennessee or Iowa. And, on top of being on schedule so far, Incitec Pivot maintains that its project has not gone over budget – or, at least, that they aren’t liable for whatever budget increases may or may not have been required: see my May 2016 update for discussion of how contractor KBR was likely left with the cost over-runs.